Thermometer Held Out in the Storm

Friday, October 31, 2008
A good baromater of the economic crisis is the amount banks borrow from the Fed every week. That number continues to go up. It's at 110 billion, up from last week by about 5%.

I'll point out for the second time in two weeks: the Fed is leveraging itself massively. If and when one of the major banks fail (think: Citi), these untold billions in credit lines will chain-react and the Fed will go into default.